Over the decades, the industry has cultivated state-of-the-art software packages, security technologies and building systems, making them readily available to self-storage developers. Now, with the help of the Self-Storage Training Institute (SSTI) and a computer, cultivating quality management skills is also readily available. In fact, a Qualified Storage Manager (QSM) designation is within arm’s reach. Just what does that mean for the industry ... and for you? Read on ...

Introducing: QSM

SSTI, owned and operated by Inside Self-Storage (ISS), has worked diligently to create an online, broad-based curriculum of essential self-storage management courses covering four core components including general self-storage information, fundamentals of operation, management and legal issues. Within each component is a series of specific courses that enrollees in the QSM program can complete within their own timeframes and around their personals schedules. In short, it’s a convenient, easy and affordable route to a quality education, provided by ISS, an organization that’s been in the self-storage industry for more than 17 years.

“Providing cost-effective education for owners and managers has been a problem for our industry since its inception,” says Jim Chiswell, an industry expert who has partnered with SSTI to launch the QSM program. “Even when you consider all the national, regional and state meetings, seminars and conferences that have been held over the past 40 years, the vast majority of owners and managers have never been in attendance. This is especially true for the small entrepreneurial owners who are the heart and lifeblood of this industry.”

Next month, thousands of self-storage owners and operators will travel to Las Vegas to participate in the largest expo in the industry, the Inside Self-Storage World Expo, Jan. 26-29. The conference has garnered a reputation for bringing the finest and most qualified industry experts to speak to audiences of all levels of self-storage experience. The education opportunities of attending such a tradeshow are abundant, but the price for attending can sometimes be too high for some small operators, who would have to close down operations for several days to participate.

“To me, SSTI and all online self-storage learning can never replace a live class or a tradeshow, because the interaction and the camaraderie are quite different,” begins Jeff Greenberger, an attorney and member of the QSM core faculty. “However, for those who want to seek a designation, or who cannot close their store for a few days to go to another city and take classes, the SSTI and its new QSM are a real breakthrough development.

“All classes are short and can be taken in one sitting, without closing the business, and you can pause them if the phone rings,” Greenberger continues. “To top it off, you learn from the best people around, the same people who would be speaking at the tradeshows.”

In this sense, for those seeking an education in self-storage management, the QSM program is like bringing the best conference in the world right to their desks. No plane tickets, hotel rooms or conference fees. Instead, enrollees can pay as they go, downloading course materials when time allows, and learning the tricks of the trade from the most knowledgeable in the field.

“Continuing education allows owners, operators and managers to keep up with the most current and successful trends in the self-storage industry,” says QSM faculty member Megan Eckert, executive vice president of USstoragesearch.com. “As the economy, industry and self-storage consumer changes, everyone needs to adjust the way they operate, market and evaluate their self-storage operations. Learning from industry experts and other operators is the best way to do this.”

Meet the Stars: The QSM Faculty

As with any winning program, it takes a team of highly qualified experts to make it a showstopper. Behind the scenes of SSTI is a cast of a dozen industry experts, all sharing a role to make the QSM program the most talked about educational opportunity of all time. Without further adieu, we’d like you to meet the self-storage professionals who’ve partnered with ISS throughout the years and are now allowing the QSM to make headlines. Introducing the SSTI stars:

Linnea Appleby has been actively involved in management and finance for 27 years and the self-storage for 10 years. She is the president of Sarasota, Fla.-based PDQ Management Solutions Inc., which specializes in self-storage facility management and services such as operational consulting, new-facility startup, property audits and the “Income Finder Service.”

Jim Chiswell is the president and managing partner of Chiswell & Associates LLC in Palmyra, Va., and has been involved in the self-storage industry for 23 years. He started his own consulting company in 1990, through which he has conducted countless feasibility and due-diligence studies for clients as well as prepared and presented customized manager training sessions. Prior to that, Chiswell was vice president of Sovran Self Storage, managing its portfolio of 34 facilities in 10 states.

Megan Eckert is the vice president of Omaha, Neb.-based USstoragesearch.com. Her marketing and information-technology background have helped the company achieve its rapid growth and become one of the premier Internet marketing firms in self-storage. Having analyzed years of online traffic and behavior trends of self-storage consumers, and having seen more than 5,000 facilities successfully implement Internet marketing, Ms. Eckert is equipped with knowledge every owner/operator must know to profit from the lucrative online marketplace.

Jeffrey Greenberger is a partner with the law firm of Katz, Greenberger & Norton LLP in Cincinnati, where he focuses on commercial real estate and real estate litigation. He represents owners of self-storage facilities and other property types. He also has a concentration in debtor and creditor rights. Mr. Greenberger is counsel to many state self-storage associations, a contributor to numerous industry publications and the voice behind the ISS Legal Learning Webinar Series.

Mel Holsinger is the owner and president of Professional Self Storage Management LLC in Tucson, Ariz., operating 42 facilities in five states. He has been involved in the self-storage industry since 1983, serves on the Arizona Self Storage Association Board of Directors and is a member of the ISS Editorial Advisory Board. He is a contributor to ISS magazine and speaks frequently at industry conferences and tradeshows. He is also a moderator for Self-Storage Talk, an online interactive forum for the storage industry.

Randy Johnston previously served as director of sales and development for Digitech International, which has provided comprehensive security tools for the self-storage industry for more than 25 years. Prior to joining Digitech, he spent 17 years in sales and served four years in the United States Coast Guard.

Jamie Lindau, the national sales manager of Trachte Building Systems, has spent the last 23 years helping property owners plan, develop, build and profit from self-storage. He is a regular contributor to industry publications as well as a speaker at national conferences and tradeshows. Drawing from his own experiences as a former self-storage business owner, he has conducted more than 200 self-storage development seminars for Trachte since 1988.

Tom Litton has managed more than 150 storage facilities in 11 states. A prolific writer, he has written more than 150 magazine articles for various self-storage publications as well as newspapers. Mr. Litton has conducted seminars worldwide on various self-storage topics including operation, management, develop-ment and ownership. His company, Litton Management & Consulting Inc., routinely conducts public seminars each year and is considered a leader in self-storage education and training.

Rick McGee has been working in the self-storage industry since 1999. In 2000, he joined forces with a team of developers and completed the Internet-based technology for Online Self Storage Inc., which allows owners and operators to process rentals and payments via their websites. In 2002, the company introduced Call Maximizer as the first transaction-based call center in the self-storage market.

Brad North entered the self-storage industry in 1989. Since then, he has excelled as an owner, general contractor, developer, general manager, trainer and consultant. He has built more than 350,000 square feet of storage, and trained and consulted with thousands of owners and developers throughout the world. His company, Advantage Business Consulting & Management, offers complete turnkey management services, currently managing more than 1 million square feet of self-storage nationwide.

Stephan Ross began his industry career in 1984 with National Self-Storage. He moved on to Executive Self-Storage as southeast regional director in 1987, and in 1996, he went to work for Extra Space Management of Salt Lake City, where he became vice president of operations in charge of feasibility studies, third-party management and facility operation in more than 10 states. Four years later, Stephan and his wife, Tammy, created Cutting Edge Self-Storage Management & Consulting.

Tammy Ross has more than 20 years of self-storage experience. As an industry consultant, she has extensive expertise in the areas of self-storage training and marketing. In 2000, she and her husband, Stephan, created Cutting Edge Self-Storage Management & Consulting, which manages properties in Arizona, Colorado, Florida, Idaho, Illinois, Missouri, Nevada, Oregon, Texas and Utah.

Randy Tipton owns and operates Universal Insurance, an entrepreneurial business that has created and provided specialized insurance coverages to the self-storage industry for 15 years. She is a seasoned industry professional with more than 30 years of insurance underwriting, marketing and management experience. Her industry knowledge has led her to be a moderator and instructor for a variety of educational forums.

Susan Weinman is the vice president of Yellow Page services for Phoenix-based Michaels Wilder, an advertising agency specializing in print and Internet Yellow Pages. She is a frequent presenter at self-storage tradeshows and has written articles for numerous trade publications.

Ray Wilson is an internationally recognized authority on self-storage investment analysis. He is president of Self Storage Data Services Inc. (SSDS), a research firm he founded in 1992. SSDS maintains a nationwide database of operating statistics on several thousands of facilities, tracking trends in the top 50 U.S. metropolitan statistical areas on a quarterly basis. Mr. Wilson’s speaking engagements have included Australia and Europe as well as regular appearances at conferences and tradeshows throughout the United States.

Ready to Enroll?

Click onto www.selfstorageeducation.com and head for the Qualified Storage Manager Program pages for full details and begin working on your designation today. If time and money is of the essence, and professional management is your ultimate goal, the QSM packages it all, promising to make you knowledgeable in all areas of self-storage management:

• Phone skills
• Marketing
• Customer service
• Site maintenance
• Sales
• Collections
• Legal issues
• Pricing strategies

“It is important as a responsible owner/developer/manager in the business to be aware of the changes in the environment to properly protect your assets in the most cost-efficient ways,” explains Randy Tipton, QSM faculty member and owner of Universal Insurance. “Knowledge is power. Having an awareness of our industry will benefit you tremendously as you grow your business.”

Having a professional degree such as the QSM designation to buoy your career and standing in this industry is even more important in today’s roller-coaster economy, explains faculty member Rick McGee. “As the economy shifts and changes, education is critical. Without ongoing education, people and positions become stagnant and unsuccessful. Education is the key to continual improvement and success.”

“President John Kennedy said that a ‘raising tide lifts all boats,’” adds Chiswell. “The QSM program improves educational opportunities for managers and owners across the United States and the world. By raising the education and profession-alism of everyone through this program, the entire industry can be raised to new heights.”

For more information and to enroll in the Qualified Storage Manager Program offered by SSTI, visit www.selfstorageeducation.com.

Mark D. Keys of Cornerstone Realty Inc. represented the seller of A Space Place Self Storage, a 40,590-square-foot self-storage facility in Huntsville, Texas. The 221-unit facility sold for $1.9 million at an 8 percent cap rate. For more information, visit, http://www.selfstorage.com/.

US Storage Center opened a second facility in Torrance, Calif. The newest location is a fully-enclosed facility providing personal and business self-storage as well as boat and RV spaces. The facility’s features include video camera surveillance, individual door alarms, electronic gates with coded access, moving and packing supplies, and resident managers. US Storage Centers are located throughout California, Connecticut, Florida, Maryland, New Jersey and Nevada. For more information, visit www.usstoragecenters.com.

We all know the importance of having good policies and procedures (P&P). They help create consistency, efficiency and good business practices among staff. They also provide a mechanism for disciplinary action when needed. But what makes for good policies and procedures?

Policies

These are the items that create and uphold our business practices. They tell the world what our intention is in regard to specific items. Policy is created from situations we have encountered that have had a negative outcome. We have learned from our mistakes.

Policies are intended to protect the owner, staff and customers, and the business’ reputation. Policy should be adhered to at all times. When everyone is playing by the same rules, it helps keep the business running smoothly.

But policy is not “law.” It needs to be reviewed periodically to determine if it is still viable as the business grows and changes. For example, even though “No Refunds” may be posted on the office wall, there are circumstances where you may need to bend the rules and offer refunds. It may be hardship, goodwill or in anticipation of additional future business. Sometimes it is just the right thing to do.

Some businesses get stuck on their policies to the detriment of the business. This is short sighted to say the least. Policies should be created with a bias toward the business, but with an understanding that in the right set of conditions it may be overridden.

When you understand the reason for the policy, you can be flexible enough to make better decisions about the business. The expectation is that staff and supervisors will use good judgment. Policy is there to protect and help, not hinder.

Procedures

While these also create and uphold our business practices, procedures are the “how to” component of the P&P duo. When we need or want something done a certain way, the process needs to be spelled out.

Sometimes the policy outlines the procedure, and sometimes the procedure is the policy. More often they are intertwined. A policy that reads “no smoking on the property” really needs no further clarification nor should “clean the bathroom every day.” However, for a policy such as “first month free storage,” a procedure needs to be in place to make sure it is applied in accordance with your business requirements.

Writing policy is easier than procedure. Everyone has purchased a product with “some assembly required” only to find that the directions were really bad. You know that whoever wrote the procedure never used it. The same is true in business. What may seem very clear to the writer may be completely misinterpreted by the user.

Request feedback from the people using each procedure. Pick staff members and have them read the directions to make sure it is complete and correct. They will offer a different insight. Better yet, have someone who knows nothing about it review it. This way you will know the explanation makes sense to new employees.

The easiest procedures to follow are those that go full circle, including the who, what, where, when and why. Forms and letters are an easy way to outline P&P items. They should be written so readers know the required steps. Rental agreements and lien notices are good examples. While not everything requires legalese, it doesn’t hurt to write some directions on forms the staff uses internally.

If you require your tenants to provide notice of vacate, make something available that explains your expectations and the easiest way for them to comply. Spelling it out eliminates interpretation.

Terms and Definitions

Your terms should be clearly outlined and consistent throughout, and definitions provided as needed. We have all heard the joke about the computer user that couldn’t find the “any” key. It might sound like an insignificant thing, but how many times have you been frustrated because the instructions for the task at hand only confused you?

Use Logic

Staff should know always understand the reason for the policy and procedure. When employees know how to correctly explain why your facility uses lock stickers to a tenant, it helps provide credibility to the staff and business, and the tenant is usually appreciative. Plus, when your staff knows the intended outcome of a P&P, you will get better buy-in from them as well.

Train and Test

The worst kind of manual is the one on the back shelf that still looks new. It is useless if the staff doesn’t read it or know it. Schedule a P&P quiz every now and then. This will get them used to checking the book first for an answer before they call you. Additionally, you will have a chance to see where their weaknesses are and then train on those items.

Hold people accountable for operating your business your way. As the staff learns the business and you establish trust, you may consider giving them leeway on some items. This, of course, is after you are sure they know the business and your objectives well enough to use the correct judgment.

Making a Manual

Don’t reinvent the wheel. You can buy good starter manuals, some that are industry-specific such as those from self-storage property-management companies. No one size fits all. Manuals vary greatly in price, quantity and quality. Purchase one and tweak it to fit your business. Simple and concise goes a long way.

Don’t assume everything in the purchased manual will fit your business as is, or that because it is in the manual it is the way it has to be. Ask your attorney to review it to ensure it’s in compliance with labor, OSHA and other laws.

If you already have a manual but haven’t reviewed it recently, do so. If your staff is not following it, they should be. Policies and procedures will make your life and staffing issues easier, promoting consistency, efficiency and good business practices.

Linnea Appleby is president of PDQ Management Solutions Inc., based in Sarasota, Fla. The company provides full-service storage facility management, consulting, new facility startup services, auditing, management training and more. For more information, call 941.377.3151; visit www.pdqmanagementsolutions.com.

Public Storage shares have been posting sharp gains in recent weeks. But while investors load up on the real estate investment trust, longtime Chairman B. Wayne Hughes and two children who also serve as company directors have been selling off large sums of shares.
 
Altogether, the Hughes triumvirate sold 5.4 million Public Storage shares on the open market for $342 million in transactions taking place Nov. 12 through Dec. 4, according to Securities and Exchange Commission filings. The shares were priced at $55.67 to $68.35.

Source: Barrons.com, Public Storage Execs Moving Out of Stock

On Thursday, Mobile Mini Inc. reported it would cut about 135 jobs or 90 percent of its workforce at its Maricopa, Ariz., manufacturing facility in order to restructure operations. The Tempe, Ariz.-based company said it was leveraging its combined fleet to satisfy the portable-storage needs customers served by its 80 branches, as a result of the merger with Mobile Storage Group and the successful consolidation of its North American location.

"We have a great deal of concern for our people and how these layoffs will affect them and their families," said Steven Bunger, Mobile Mini's chairman, president and CEO. "However, we must realign our workforce to match the realities of our business, our long-term growth strategy and our financial objectives."

Source: RTT News, Mobile Mini To Cut 135 Jobs At Arizona Manufacturing Facility - Update

Michael Howard  and Steve Hryszko of CB Richard Ellis Self Storage Advisory Group's Northeast Region, represented Storage Zone in the acquisition of State 8 Mini Storage in Cuyahoga Falls, Ohio, for $1.3 million. The 28,700-square-foot facility has 180 units. For more information, visit www.cbre.com/.

Security is a reluctant purchase in most markets, but not so in the self-storage market. The difference is self-storage operators can use security as a marketing strategy and, therefore, devote more attention to it than virtually any other commercial enterprise.

Storage customers need to be assured about the safety and security of their belongings. This is where overt security becomes a major marketing point. Thus a site’s security features translate into benefits for the customer in terms of peace of mind.

Every self-storage site has different security needs so solutions need to be flexible. Below are three examples of facilities in Australia where unique security solutions have been successfully applied.

Wine Ark

Wine Ark, a wine-storage facility in an inner Sydney suburb, features a thick wooden door in a steel frame studded with steel bolts. The security system includes keypads and biometric fingerprint scan all linked by software and the software controller. The keypad at the front door allows entry to a foyer. Both the entrance door and the foyer feature closed-circuit television.

Entry to the vault from the foyer is achieved via a biometric fingerprint scan. This is linked back to the security controller and also to a separate PC for customer enrollment. Once the finger scan matches the template stored on the reader, a sliding steel door opens and the individual alarm on the private vault is disarmed.

Wine Ark also features fully regulated temperature and moisture control with multiple backup systems, including back-to-base alarms and sprinkler systems. The high-tech measures create an environment of maximum security for criminal and environmental risks. Because wine storage has high value per square meter, security is a critical sales and marketing tool.

CBD Storage

In complete contrast to Wine Ark, CBD Storage is in a public underground multi-story car park in the center of Sydney. This presents significant risks as well as opportunities. Although anyone can enter the site, the potential client base is huge, as it consists of thousands of local businesses and inner-city dwellers. The developer spent a significant percentage of the fit-out budget on security, with the market intent to offer convenience and security to an inner-city clientele.

The security includes access control and alarms on all units. Since access to the site is available to any car-park user, it is backed up with a CCTV system featuring IP cameras connected to local hubs on each floor and fed back to a gigabit hub in the security control room. All recording is based on motion detection, and the cameras are sited to avoid capturing normal vehicular traffic. The management and recording is managed by a software-based solution allowing various types of storage.

The access control is limited to allowing free parking for self-storage customers as well as disarming and then rearming their individual units, which is accomplished by using keypads on one of the entry lanes to the car park and one of the exit lanes. This works for customers with cars, but there is also a shopping center, hotel and apartments above the car park, so customers can also be pedestrians.

To cater to these tenants, there is a manned reception office and marketing area on the top level. Outside the office are two keypads, one for entry and disarming, the other for exit and re-arming.

Aquastack

Aquastack, Perth, Australia

The third site is Aquastack, a specialized boat storage facility in Perth. The site has what looks like a giant cage with big sliding gates. Robust delinquency control is achieved by using an access-control system coupled with high fences enclosing huge racks for storing boats.

Security also consists of reliable lifting equipment and racks. The standard of construction is very visible, and the size and structure are also a strong marketing feature.

In addition to site security, the software package manages all access control and security functions in partnership with accounting software, giving the self-storage operator control of delinquencies and reducing business risk.

The type of security each site needs depends on a variety of variables including location, market conditions, special storage requirements for niche markets and, of course, budget. However, the common element is that for any site to be successful and profitable visible security systems are essential for both customer and owner peace of mind.

Martin Dugdale is the principal of Holdfast Security Pty. Ltd., the agent for Digitech products in Australia and New Zealand. He can be reached via e-mail at [email protected].